Assignment:
Tuff-Rider Inc. manufactures touring bikes and mountain bikes in a variety of frame sizes, colours and component combinations. Identical bicycles are produced in lots of 100. The projected demand, lot size and time standards are as follows:
|
ITEM
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TOURING
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MOUNTAIN
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|
Demand forecast
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5 000 units/year
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10 000 units/year
|
|
Lot size
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100 units
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100 units
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Standard processing time
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0,25 hour/unit
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0,5 hour/unit
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|
Standard setup time
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2 hour/lot
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3 hour/lot
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The shop currently works eight hours per day, five days a week, 50 weeks per year. It operates five workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15% capacity cushion.
How many workstations will be required next year to meet expected demand without using overtime and without decreasing the form's current capacity requirement?